Bitcoin Pin $88,000! CoinShares: The BTC Reserve Company’s speculative bubble has burst, can the Fed’s interest rate cut next week save it?

Although the probability of the Federal Reserve cutting interest rates next week remains high, Bitcoin still touched $88,000 earlier, and the recent mNAV of the cryptocurrency treasury company DAT also fell from a high to 1x.
(Preliminary summary: The core PCE of the United States in September was lower than expected and "inflation is under control"! Bitcoin rebounded to exceed US$91,000, and Ethereum stood at $3100)
(Background supplement: Is the December interest rate cut confirmed? The Fed's mouthpiece: the inflation data has risen moderately)

Contents of this article

At 11 o'clock yesterday (5th) night, the United States announced that this year's 9 Monthly personal consumption expenditures (PCE) data: The core PCE price index recorded an annual growth rate of 2.8%, lower than the 2.9% expected by economists, and slightly lower than the previous value in August; the monthly growth rate was in line with expectations of 0.2%.

The index is one of the inflation indicators that the Federal Reserve (Fed) pays attention to. Last night’s data maintained the market’s bets that the Fed will start cutting interest rates next week and even cut them multiple times next year. CME Group's FedWatch tool shows expectations that the Fed will cut interest rates by another 25 basis points at next week's FOMC meeting remain at nearly 90%.

U.S. stocks rose but Bitcoin fell below $90,000

After the news was announced, the four major U.S. stock indexes rose. At the close, the Dow Jones rose 104 points (+0.22%), the S&P 500 rose 0.31%, the Nasdaq rose 0.19%, the fee half strengthened 1.09%, and TSMC ADR also rose 0.61%.

However, although Bitcoin once broke through US$91,000, it quickly turned around and plunged down to US$88,000. At the time of writing, BTC is currently trading at US$89,306, down 3.51% in the past 24 hours. Is the current market a healthy correction, or is it about to start the next wave of decline? There are mixed opinions in the community.